UAE Tax Group Benefits & Eligibility under Corporate Tax

Why run three races when you can run one?

If you own more than one company in the UAE, you already know the struggle. Each company has its own bank accounts, its own records, and its own tax deadlines. It feels like you are running multiple races at the exact same time. But what if you could group them together and treat them as one single team?

The UAE government allows businesses with the same owner to form a Tax Group. Think of it like a "Family Plan" for your corporate taxes. Instead of filing several different tax reports, you file just one. It’s not just a way to save time on paperwork; it’s a smart way to keep more money in your pocket. As we get into 2026, setting up a group is one of the best ways to make sure your companies are helping each other grow.

Who is invited to the group?

Before you can join everyone together, the tax office (the FTA) has a few simple rules. These rules make sure that the companies in the group are truly working as one unit. To be eligible, your companies must meet these three checks:

First is the Ownership Rule. The main company must own at least 95% of the other companies. It’s not enough to be a small partner; you need to have almost full control over the shares and the voting. Second is the Location Rule. Every company in the group must be registered and living right here in the UAE. You can't include a branch that is based in another country.

Finally, everyone needs to be on the Same Schedule. All companies in the group must follow the same "Business Year." If one company ends its year in December and another in March, they can't be a group until you match their dates up. You also need to make sure everyone keeps their books in the same way. It’s like making sure everyone on the team is speaking the same language so the final report makes sense.

• Ownership Check: Do you own 95% or more of the companies?
• Location Check: Are all the companies based in the UAE?
• Calendar Check: Do all the companies have the same year-end date?
• Accounting Check: Is everyone keeping their records in the same style?

How your business wins with a group

Once your group is approved, the daily work for your business becomes much easier. The benefits aren't just for the accountants; they help the owner too. The biggest win is Sharing Profits and Losses. Let’s say your main company made a profit of 1 million dirhams, but your new shop lost 400,000 dirhams this year. If they are separate, you pay tax on the full 1 million. But in a group, you subtract that loss. Now, you only pay tax on 600,000 dirhams. This is an instant way to lower your tax bill.

You also get to Simplify the Paperwork. Instead of preparing and paying for ten different tax filings, the main company handles everything in one go. You have one deadline and one report. Plus, you can move money or assets between your companies without extra tax rules getting in the way. It’s a much smoother way to run a business family.

• Pay Less Tax: Use one company's loss to lower another company's profit.
• Less Admin Work: One single report instead of many.
• Better Cash Flow: Move money between your companies more easily.
• One Tax Number: The whole group uses just one ID for their tax filing.

A few things to keep in mind

While a Tax Group is great, it’s a big commitment. One thing to remember is Shared Responsibility. If the group owes tax money, the government can ask any of the companies in the group to pay it. You are all in it together, so everyone needs to keep their books clean.

Also, some companies cannot join. For example, Free Zone companies that are already getting a 0% tax rate usually have to stay on their own. The government wants to keep "0% tax" companies separate from mainland companies. And remember, if you ever sell enough shares so that you own less than 95%, that company has to leave the group right away.

• Shared Risk: Every company is responsible for the group's tax debt.
• Free Zone Rules: Check if your Free Zone company is allowed to join.
• Watch the Shares: If ownership drops below 95%, the group might break.
• Keep Good Records: Even in a group, each company still needs its own clear records.

Conclusion

Forming a Tax Group in the UAE is like turning a group of separate players into a championship team. It takes a little bit of organization at the start, but the rewards are worth it. You save time, you save money, and you have much less stress when tax season rolls around.

At ICB Tax Consultancy, we’ve spent 12 years helping business owners in the UAE get organized. We don't just do the math; we help you look at the big picture. We’ll help you see if a Tax Group is right for you and handle the hard work of getting everyone synced up. Whether you have two companies or twenty, we make sure your tax strategy is as strong as your business.

Frequently Asked Questions (FAQ)

What is the best part of a Tax Group?

Being able to use one company's loss to reduce the profit (and the tax) of another company.

Do I have to own 100% of the companies?

No, but you must own at least 95% of the shares and voting rights.

Can I add a Free Zone company to my group?

Usually no, especially if they are already getting a 0% tax benefit.

Does a group save me money on accounting?

Yes, because you file one single return instead of several different ones.

What if one company in the group has a tax debt?

The other companies in the group might be asked to pay it because everyone is responsible together.

Can we have different end dates for our business year?

No. To be in a group, every company must end its year on the same date.

Is a Tax Group the same as a VAT group?

No, they are separate. You can have one without the other, but many people do both.

How many companies can I put in one group?

There is no limit, as long as the parent company owns 95% of each one.

Do we all use the same Tax ID?

Yes, once the group is formed, you use one single "Group TRN" for your filings.

What if I sell one of the companies?

If your ownership drops below 95%, that company must leave the group immediately.